The underrated key to successful ERP implementation in SMBs

9 December 2024 by
The underrated key to successful ERP implementation in SMBs
Jonathan Wilson

The success of an Enterprise Resource Planning (ERP) implementation for small and medium-sized businesses (SMBs) hinges on a critical yet frequently underestimated factor: dedicated time and collective team commitment

Most organisations often make the crucial mistake of viewing the implementation as a technical project to be outsourced or managed passively. While sleek interfaces and powerful features are undeniably important, a successful ERP deployment hinges on the willingness and ability of the business to dedicate the necessary resources to navigate the complexities of the process.  

The time and effort conundrum 

It is tempting to allow the vendor lead the ERP implementation process, they are the experts after all and you have paid them the money. However, a successful ERP implementation is fundamentally a collaborative affair driven by effective human interactions.

  • Dedicated personnel: A customer champion should be appointed. This individual is the central point of contact and collaboration between the organisation and the vendor. They are the glue that binds the implementation team together and steers the project toward successful completion. 
  • Cross-functional involvement: Every department must actively participate. This requires input from all relevant functions to ensure that the new processes are efficient and meet the needs of the entire organisation. 
  • Continuous engagement: Even after the initial implementation, a successful ERP requires ongoing support and maintenance. This requires ongoing commitment to manage updates, address user queries, and ensure the continued smooth operation of the system. 
Common failure points due to time and effort constraints 
  1. Incomplete data migration: Rushed or inadequate data cleansing leads to inaccurate or incomplete data and can contaminate the entire system, leading to costly errors and inaccurate reporting later. 
  2. Fragmented process redesign: Without dedicating time for detailed process mapping, you may be just replicating existing inefficient workflows and not realising the full potential of the new system. 
  3. Insufficient training: Lack of time for training can lead to frustration, system inefficiencies, errors, and a reluctance to embrace the new system. Case in point – we had a client who proactively compiled hundreds of use-case scenarios and insisted that every single employee, regardless of their role, become proficient in these scenarios within the new ERP system. This meticulous approach resulted in a remarkably smooth go-live, minimising post-implementation issues and fostering widespread user confidence.  
  4. Minimal testing: Insufficient time allocated for thorough system testing may lead to critical operational vulnerabilities, causing major issues down the track.  
The DNA of a project champion 

Success hinges on a dedicated internal leader – the Customer Champion – who: 

  • Must have the authority and explicit executive support. 
  • Has the ability to influence stakeholders and communicate effectively across the organisation. 
  • Drive cross-functional collaboration. 
  • Is committed to ensure that all necessary resources are allocated, communication channels remain open and the implementation remains a top priority for the organisation. 
Practical recommendations 
  • Realistic time allocation: As a rule of thumb, you should expect to invest internal resources equivalent to 50 percent of the contracted ERP vendor's projected implementation time to ensure the project gets the attention it needs for a smooth rollout.
  • Team commitment: Assign your most business-knowledgeable and committed employee as your project champion. 
  • Clear expectations: Communicate the full scope of required involvement to all stakeholders.  
  • Continuous learning: Build ongoing training and adaptation into your implementation strategy. This will allow your business to get used to the new system quicker and enable a smoother transition.  

In conclusion, while the technical aspects of ERP implementation are crucial, the time commitment of the business personnel and the collaborative effort of a dedicated team, guided by a strong customer champion, is the often overlooked, yet most critical success factor. Don't let a lack of upfront time planning and team collaboration derail your journey to improved business efficiency.  

Your ERP implementation will succeed or fail based on one fundamental factor: how seriously your organisation takes its own digital transformation journey. 

If you need any assistance with your Odoo ERP implementation, feel free reach out to us for a no-obligations discussion.